Nel ASA has reported “strong” fourth quarter results for 2018.

The Norwegian company saw its revenues rise by 8% in the quarter to NOK 124.9m ($14.6m), up from NOK 115.6m ($13.5m) in the fourth quarter of 2017.

The Fueling and Solutions segment experienced a positive development during the quarter, while the Electrolyser segment was negatively impacted by certain project delays.

The adjusted EBITDA ended at NOK -18.3m ($-2.1m), adjusted for non-recurring and other ramp-up costs of NOK 23.6m ($2.8m). The reported EBIT was NOK -60.7m ($-7.1m). The order backlog amounted to NOK 350m ($41m).

“The activity within hydrogen across the globe has never been higher. We are all hands-on-deck to the meet the vast opportunities ahead…”

Jon André Løkke, Nel’s CEO

Commenting on the results, Nel’s CEO Jon André Løkke said, “The fourth quarter reflects Nel’s focus on staying at the technological forefront across segments and our ambition moving forward to take advantage of attractive market opportunities.”

“The green fertiliser project with Yara is just one example of how we’re working to develop next generation electrolyser technology for industrial applications, such as ammonia and refineries.”

“Coupled with our focus on ongoing technology development to accommodate an exciting and fast-growing heavy-duty segment, we are well positioned for what lies ahead for new and existing hydrogen markets.”

After the closing of the quarter, Nel entered into a contract of more than $6m with Shell for the delivery of a H2Station® solution for fuelling of heavy-duty vehicles (HDV) in the US.

Nel also received notice on bid winner for two hydrogen fuelling stations in South Korea with a proposed value of €2.8m ($3.2m).

The company was also awarded a purchase order for a 2MW PEM electrolyser and entered into a 30 MW framework contract in Switzerland with Hydrospider AG, an affiliated company of H2 Energy.

“Freight activities are projected to grow significantly in the coming years. With hydrogen being the most promising zero emission fuel for heavy trucks, we’re now gearing up our efforts and technology towards offering solutions that can accommodate growth in this segment. The trend is underlined by the high market activity we’re experiencing,” said Løkke.

He concluded, “The activity within hydrogen across the globe has never been higher. We are all hands-on-deck to the meet the vast opportunities ahead, leveraging the fast-growing HDV opportunities and developing the next-generation electrolyser, and constantly balancing between current business and longer-term strategic positioning.”

“We target to maintain a leadership position with a global presence, cost leadership, and preferred-partner status for industry participants.”